How Budget and US Elections Could Shape Stock Market Trends

Granting, a variety of industries have different manners of reacting to election results as well. For instance, shares in companies under the defense category will see their stock surge after there is an election of what is deemed as National Security for a government-friendly junta, while those under the renewable energy segment will do well in a green government regime. The statements provided during the campaigns may, therefore, be used as pointers to areas to focus on. It would also mean that long-term economic trends are considered more important than short-term political incidents.It could be noted that, whereas the US elections in 2024 can largely influence the short-term volatility of the stock market, long-term trends in the economy may impact the stock market in the longer term. Porter categorizes forces into industry-specific and competitive forces, with the former in customer, bargaining, the threat of substitutes, the threat of new entrants, and the threat of suppliers categories, which are influenced by wider factors like inflation, interest rates, and health of the global economy, among others.

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